Mass. Attorney General Proposes Auto Insurance Reform

Attorney General Martha CoakleyAuto insurance in Massachusetts may be more affordable than ever, but the state’s attorney general still wants more reform.

Attorney General Martha Coakley has proposed changes to the auto insurance industry, which she says will enhance competition, improve consumers’ ability to shop effectively for premiums, better prevent deceptive practices, and ensure greater transparency. Her office held two well-attended public hearings on the matter last week, which were aimed at letting consumers voice their opinions about insurance.

Coakley’s proposals would, among other provisions, prevent discriminatory or misleading practices, require fair and transparent insurance rating, and ensure that customers know about all the discounts they may be entitled to, she said.

Massachusetts had already imposed unprecedented regulation on the industry in 2008, which led to $270 million in savings for consumers, reported the Division of Insurance. Coakley applauded that regulation, but says more is necessary to protect consumers.

Opponents told Insurance News Net that more reform would limit insurer’s ability to set rates and lead to more litigation and higher premium costs.

A recent study pegged Massachusetts as the state with the most affordable auto insurance in the country.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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